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I need help with making the graph and finding the points. (a) Draw a correctly labeled graph for a monopoly and show each of the
I need help with making the graph and finding the points.
(a) Draw a correctly labeled graph for a monopoly and show each of the following. (i) The profit-maximizing quantity, labeled QM (ii) The profit-maximizing price, labeled PM (b) Assume the monopoly now engages in perfect price discrimination. On your graph in part (b), sho the profit-maximizing quantity for the price discriminating monopoly, labeled QPD. (c) Based on your answer to part (b), will a perfectly competitive market produce a larger, smaller, or the same quantity as the perfectly price discriminating monopolist? Explain. Please respond on separate paper, following directions from your teacherStep by Step Solution
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